Slow down your churn rate and keep customers happy with these straightforward, inexpensive strategies for improving customer retention.
It’s no secret that it’s less expensive to keep an existing customer than to acquire a new one. The Harvard Business Review reported that acquiring a new customer can cost five to 25 times more than retaining one you already have. If it’s ROI that you’re after, the numbers show it makes sense to dedicate resources towards customer retention. Your customer retention strategy doesn’t have to rely on costly focus groups or complicated software. Here are six simple, affordable tactics you can implement to minimize your churn rate.
1. Provide Customer Service Using Text Messages
Customer service can make or break a business. Lower your response time, improve customer satisfaction and keep fewer people on hold by giving them the option to text your business with inquiries and requests. Research from Marketing Strategies International found that 70% of consumers want to use mobile messaging for troubleshooting, and nearly two-thirds want to use it for purchases or reservations.
Business text messaging is easy to implement and you can even use your existing phone number. Plus, our intuitive dashboard makes onboarding new team members a breeze.
2. Incentivize Your Top Customers to Stay
This doesn’t have to mean “buying” your customers with rebates and coupons. Incentivizing customers is about providing value, not offering discounts. Let’s take Haseley Family Chiropractic as an example. Dr. Shawn Haseley sends automated motivational texts to participants in his weight loss program. These texts do two important things: they keep people in the program and they keep them as paying customers.
3. Schedule Automatic Follow-Ups
Even if you’re careful about assigning follow-ups to specific team members, it’s easy to let customers fall through the cracks during a hectic work week. Streamline your workflow and lose fewer leads by scheduling automatic follow-ups. Our autoresponders feature lets you schedule a series of texts ahead of time and space them out over several hours, days or weeks. Use this tool to help you keep your promises and re-engage dormant customers.
4. Personalize Your Marketing Messages
Even if you do implement a top-of-the-line CRM software, it’s important not to let your relationships begin and end with technology. After all, your customers aren’t numbers—they’re people. Make sure your messages are relevant and customized to each person. This can be as easy as using custom fields in your campaigns to include your customers’ names at the beginning of each message. Personalizing your messages doesn’t just make your customers feel valued, it also helps build trust.
5. Educate Your Customers Often
Give your customers a reason to stay by letting them know about your latest products and offers. Keeping your customers in the dark is an easy way to ensure your brand is forgotten. Be careful not to bombard them with information. Instead, identify what valuable information or resources you can provide. This can be as simple as a motivational text, as we mentioned above, or as in-depth as a whitepaper.
6. Ask for Feedback from Your Regulars
If there’s anyone who knows how your business can improve, it’s your customers. Bill Gates once said, “Your most unhappy customers are your greatest source of learning.” Send out surveys and feedback forms to identify opportunities for improvement. This empowers you to proactively solve problems before they turn into serious issues.
Allocating time and money towards customer acquisition when you’re losing existing ones is like filling a bucket with a hole at the bottom. These simple strategies can help you retain customers and in turn, give you more time and funds to bring in new ones.